Introducing SpaceStake
Introducing SpaceStake
Disclaimer: This DeFi protocol will be unlike any other already existing Olympus Fork projects. SpaceStake will first fork from the audited Olympus DAO contracts and migrate to Binance Smart Chain (BSC). The native currency for the SpaceStake protocol is SPST.
The SpaceStake protocol is designed and developed by experienced and skilled DeFi developers, designers, and researchers. The main aim behind SpaceStake is to be more than just another fork of Olympus DAO. The aspirations of the team behind SpaceStake are to be better than any other DeFi protocol by offering two additional features.
Why Olympus DAO?
SpaceStake noticed that Olympus DAO introduced new tokenomics to the crypto community, and this financial model with strong tokenomics has been met with positivity. SpaceStake aims to create a positive flywheel for treasury growth and the Olympus model implemented in the SpaceStake protocol allows users to stake their SPST and earn more SPST as rewards.
Most DeFi protocols do nothing to help investors avoid risks and huge price volatility. SpaceStake realized that the Olympus DAO created the strongest tokenomics of the DeFi world and decided to bring the bonding and protocol-owned liquidity model to the SpaceStake protocol.
SpaceStake will first start out on the BSC network, which is considered to be the future of decentralized finance. This should be a strong base for SpaceStake as significant liquidity and a rich DeFi ecosystem already exist on BSC.
The long-term goal here will be to establish SPST as a stable currency with a broad DeFi ecosystem, which is primed for explosive growth.
Tokenomics
SpaceStake will be borrowing the tokenomics from Olympus DAO. Each SPST will be backed by 1 USDT(not pegged). It’s worth noting that in the Olympus DAO model the tokens can not be minted or burned by anyone except the protocol. So only SpaceStake will mint or burn SPST tokens in response to price. For instance, if the price value of SPST goes below 1 USDT, the protocol buys SPST back and burns it. On the other hand, if the price value goes above 1 USDT, the protocol mints and sells new SPST tokens.
This is because the treasury must hold 1 SPST, and only 1 SPST, for each SPST token. It makes a profit every time it is bought or sold, which means the SpaceStake protocol will either get more than 1 USDT on the sale side or spend less than 1 USDT on the purchase side.
The fact that the SpaceStake protocol will hold 1 USDT for each SPST token allows us to say with certainty that SPST will not trade below its intrinsic value in the long term.
How will SpaceStake work?
Basically, just like Olympus DAO, SpaceStake will also provide staking and bonding services but they will be combined with the SPST token (and not the OHM token of the Olympus DAO protocol). SpaceStake hopes to see SPST become a global trading unit and a medium of exchange currency in the real world in the near future.
On the SpaceStake protocol, users will be able to participate in both staking and bonding strategies. These will all be attached to the SPST token, enhancing its use case.
Staking is a long-term strategy that will reward SPST to users when staking on the SpaceStake protocol. The reward rate could be varied depending on the number of SPST tokens staked in the protocol.
When staking SPST, the rewards that users will receive can be used on other DeFi protocols. To redeem SPST, users will have to burn the rewards they receive. The SPST rewards come from bond sales, which we are going to discuss below.
Bonding is a short-term strategy that allows SpaceStake to own the provided liquidity and reserve assets. Bonders provide Liquidity Provider tokens or crypto assets such as USDT, FRAX, LUSD, and wETH to buy SPST tokens at a discounted price with a vesting period.
Bond sales will generate profits for the SpaceStake treasury so that they can mint SPST tokens and distribute them to SPST to the users who stake their SPST tokens (in the first strategy).
What’s new?
As mentioned earlier, SpaceStake will not only be another fork of Olympus DAO. SpaceStake will achieve this with the help of two additional features. The first is “Locked Staking”, which would be staking with a locked tenor, for example, 14 days. The good news here is that this Locked Staking feature promises to have a much higher Annual Percentage Yield (APY) than the regular staking feature that most DeFi protocols offer.
The second feature would be Treasury fund’s 15% allocation to Marketing. For all of the successful Defi projects out there, they must have one thing in common — a solid and well-executed marketing strategy. Our team consists of marketing experts who are well aware of this secret sauce, as they have helped other projects to reach more than 1 billion USD Total Locked Value (TVL). As we’re not taking money from VCs, we will allocate 15% of SpaceStake’s Treasury for marketing purpose. This will ensure our protocol’s outperformance against other OlympusDAO forks. All the marketing expenses will be recorded in public ledger to ensure transparency.
Both of these new features that SpaceStake will introduce aim to serve one single purpose, that is to support the SPST token price by maintaining liquidity stability and building up the treasury, which will in turn back the token price.
